Hot Market, But No Bubble ! … Norair Yeretsian

It’s a sellers market in residential real estate in the Greater Toronto Area (GTA) with inventories down dramatically. Pricing /valuation pressures are intensifying for the available product and inspiring a competitive bid process among willing/able purchasers.

The recent data shows inventory ; aka listings down approximately 4.4% in the GTA and home prices climbing on average by 9.7%, with 7,773 homes changing hands in Toronto. With a record average selling price of $481,305 for a home in Toronto as of November 2011 according to CREA ; Canadian Real Estate Association.

It will be an interesting and challenging time for buyers come the Spring Market 2012, just around the corner and which usually starts about late February…

The inventory that comes on to the market will either help buyers with selection and variety or further compress the market and put increased pressure on  raising the prices of housing in the GTA while the demand appears to be stable for the foreseeable future.

As long as interest rates also remain low and steady encouraging local acquisition of homes for primary use or investment, demand will be steady.

If you drive the streets of the GTA, you will notice the changing skyline with all the new developments of condos and new communities rising. These communities will need the infra-structure to support, feed and service them and so there will be a ripple effect throughout the balance of the City. All good things, with more jobs for people and taxes for all levels of government.

What is amazing is how little  negative impact the doubling of taxation (Land Transfer Tax has had on properties)  on purchasing real estate in The City of Toronto seems to have had on market activity and prices.  Which by the way brings in approximately $300 million into the City’s treasury. This has not cooled off buyers as yet and not in this good economy that Toronto is currently enjoying.

If you would like to discuss a move or an investment in Toronto, Canada we at Envoy Capitol Realty Inc., brokerage would love to represent your interests here.

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Envoy Capitol Realty Inc.,brokerage        Toronto ,  Canada

Norair Yeretsian, broker of record

Email : capitalmoves@gmail.com

Caution : Investing is serious business and you should not do it without good due diligence and consulting the appropriate professionals. The above opinion is provided as information for discussion purposes only and is in no way meant to be professional advise as to what you should or should not do or invest in. Kindly govern yourself accordingly.

Rising Home Prices Signals What Exactly ?

An article in the Wall Street Journal by Jason Chow, suggests prices are rising and there may well be a misreading about the cause , the effect and the consequential take away by the rest of us for our market(s).

Bloomberg News

Home prices are rising faster in Hong Kong than anywhere else in the world, according to a new survey.

Those living in Hong Kong have long suspected real-estate prices are rising faster in their city than anywhere else in the world. A new survey shows they’re right.

According to the latest release of the Global House Price Index by real-estate firm Knight Frank, Hong Kong residential real-estate prices have risen 19% during the 12-month period that ended Sept. 30. That jump pushes the territory to the top of the world in terms of price increases, far above the 1.5% global average increase.

Estonia ranked second for rising prices, with houses in that country going up 14.3% during the same period.

India was third at 13.9%, while China ranked sixth with an 8.9% increase. (The figure for China was based on home prices in Beijing and Shanghai only.)

Meanwhile, American homeowners fared poorly, ranking 39th with a 3.9% decline in prices over the 12-month period. Still, they can take solace in knowing that the U.S. housing market is in better health than the one in Ireland, which ranked dead last at 51st with a 14% decline.

But the real-estate market in Hong Kong is showing cracks, leading many to believe the city may be headed toward a downturn. Prices actually declined 1.1% during the three-month period ended in September when compared with those in the previous quarter. The run-up in prices in Hong Kong over recent years may have exhausted itself as buyers have become shy: The number of Hong Kong property transactions fell 14% in September from the month before.

Asia fared better than the rest of the world, with annual price growth of 6.9%. But the experts at Knight Frank say they think that trend will wane in the near future.

“The East/West divide in price performance, evident since 2008, is now starting to fade as the deflationary measures applied by policy makers in Asia start to take effect,” the real-estate firm said.

Real Estate is local, the most knowledgeable people are the people in each of these areas about their respective areas. We can look at macro, overview perspectives from 30,000 feet above / or away from the location – but local experts know best. Living it and deal with it day in and day out. Yes world economic crises may have a psychological impact on the activity contemplated by a market participant – but supply and demand factors usually kick in and smooth things out in the longer  trend line. Boots on the ground – local practitioner is best source for insights , data and what is actually happening in the area, its your best defence and offence. In protecting your capital and strategically moving forward with investments.

In Toronto, Envoy Capitol Realty Inc.,brokerage can assist you in the buy, sell, lease, manage and develop your asset(s), connect with local – it matters.

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Email :  capitalmoves@gmail.com

Website :  www.envoycapitol.com

Envoy Capitol Realty Inc.,brokerage           Toronto , Canada

Road Map To Success !!!

Having a Road Map the overview of what you want to achieve is critical to success of all missions.

Whether your mission is to develop a great real estate career or a portfolio of properties,

the Road Map should get you there.

Now you are not craving it out in stone, on paper or on your computer with room enough for

refinement and flexibility to adopt to the changing circumstances and environment of life and

the world ( economy) around you.

Step 1 ; What do  you want to accomplish within what timeframe?

Step 2 : Assess your resources to determine the route you will take to achieve at your destination.

What else do you need;developing a skill set, time, money, team members, collaborating with others to

build up the needed resources.

Step 3: Be determined and persistent, a relentless drive towards your goal !

Step 4: Review and Refine as needed, check to see where you are; how near or far from your goal(s).

Step 5: Rest and re-set if you must ( patience is needed ) this is the controlled mature approach.

Step 6 : Leverage your team to the next level of play

And teach others along the way – it will help you better understand and raise your level of consciousness about your

environment and circumstance and how others are dealing/thinking with it/ about it.

As you succeed, your community succeeds with a clear and rational approach to accomplishing goals set.

We at Envoy Capitol Realty Inc.,brokerage are a full service real estate brokerage company

with an interest in the long-term success of our clients and our community Toronto.

We provide a unique end to end service from assessing, buying or selling, leasing and managing

the property through to development or syndication of investment properties. We are prepared to

be your virtual real estate arm in the local economy.

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Website : www.envoycapitol.com

Envoy Capitol Realty Inc., brokerage        Toronto , Canada

 

Assets Under New Management : Good Strategy ?

Many times it makes good sense for an independent party to manage your real estate.

When they can do it more efficiently and better than you can and achieve the desired results.

They worry about all the little things that can go wrong.

They can bring interesting opportunities your way that may not other wise come.

They can work on a mission of achieving value, cash flows that you did not think of or care about.

They have to justify why they should be used and kept.

Answering the central question : What is the value proposition, the rest for being?

The why are we doing this action?

Your second pair of eyes and your buffer from wasted time and effort.

The Wall Street Journal reported that ;

The Dubai Investment Group has decided to make such a move and transfer its business to a third-party to represent them.

“Dubai Investment Group is closing its New York office and transferring control of its $1.1 billion
U.S. real-estate portfolio to a private-equity firm co-founded by Mark Walsh, the former head of
Lehman Brothers Holdings Inc.’s real-estate operation.

The move marks the most notable step in the comeback of Mr. Walsh, who is best known for masterminding
Lehman’s real-estate strategy during the boom years. His deals, like the privatization of Archstone-Smith Trust in 2007,
played a big role in Lehman’s demise. His new firm has been steadily increasing its assets under management”

What are your thoughts on this move ?

Envoy Capitol Realty Inc., brokerage is set up and motivated to represent both individuals and family
business offices with their real estate in Toronto, Ontario , Canada.
Being your asset managers and virtual real estate department as we bring a professional standard
to working and dealing with real estate investments.
Allow us to introduce ourselves and show how we can assist you and your company in real estate matters.

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www.envoycapitol.com

email : capitalmoves@gmail.com

Envoy Capitol Realty Inc., brokerage        Toronto, Ontario         Canada
Buy,Sell,Lease,Manage,Develop,Syndicate,Consult – Investments

Finally a Good Idea…To Solve the Housing Crisis.

It has been said and I may be paraphrasing Sir Winston Churchill, ” Americans eventually do the right thing,only after they have tried everything else.” However finally a good idea to help resolve America’s housing crisis. An idea that works at the root of the economic concept of supply and demand with a motivation as a kicker. America has an oversupply of houses and a shortage of willing buyers with CASH. So open the doors to immigration to those who have CASH and want to come to America ! Problem solved…. here’s the CNBC background story with links… after you review it leave a comment or suggestion below with your perspective on this idea – do you have a better one?

“A new Senate bill would help spur demand in U.S. housing by offering foreign investors a three-year “homeowners visa” if they invest half a million dollars cash and stay in the house for 180 days, co-sponsor Sen. Charles Schumer told CNBC Monday.

Patti McConville | Getty Image

“We all know housing is dragging down our economy and the problem is basic supply and demand,” said the New York Democrat.

The bill, co-sponsored with Mike Lee, a Utah Republican, “simply increases the demand. There are literally millions of people around the world, many of them retirees, some not, who would like to live here in America.”

The residency requirement will force these investors to pay federal and property taxes, Schumer pointed out, and is intended to allay immigration concerns.

“We have to straighten out our immigration policy,” Schumer said. “Immigrants are good for America. We should not just have people who cross the border illegally.”

His visa bill is “not a path to citizenship,” he stressed. But those who come using the visa can renew it every three years “as long as they stay in the U.S.”

In the same interview real estate mogul Richard Lefrak, head of the Lefrak Organization, who said he first suggested the “homeowners visa” idea three years ago, said the bill’s provision to make it easier for Chinese citizens to visit the U.S. will draw more monied entrepreneurs, which will prompt more U.S. investment.

He said that “40 percent of the wealthy people in China would like to leave. I mean they’re going to want to come here and they’re going to want to spend money and start businesses and buy the homes.”

Same for the Brazilians, said investor Wilbur Ross, CEO of WL Ross & Co. “You’re already seeing it in Florida,” he said, noting that 20 percent of all the residential real estate sales in Miami last year was by Brazilians.

“He and Lefrak said the residency requirement may scare some investors away but acknowledged having that provision makes the bill politically palatable.

“If we tap some of the wealth in Asia, think how it would help housing” in California, Las Vegas, Florida and other troubled real estate markets, Lefrak said. “Any bill that has the support of Sen. Schumer and Sen. Lee, on opposite sides of the political spectrum, means there’s some merit to the idea.”

The Solution is out there some place, what are your thoughts on this proposal in the Senate?

Yes there are others, you can explore. CASH now can solve a lot of problems the world over….

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